Building upon this earlier post about searching for Rule #1 companies on Investools, here's an email that came in last week from Jon. The parameters he's using may be helpful to others using the software to research Rule #1 companies.
Phil,
I was reading your recent post on searching using InvesTools. I did a similar type of search this weekend. I used the prosearch and these parameters:
5 year book value growth1 year EPS growth3 year EPS growth5 year EPS growth1 year sales growth3 year sales growth5 year sales growth1 year cash flow growth3 year cash flow growth5 year cash flow growthROE (couldn't find ROIC, so I used this instead)
This gave me 45 results. I used the trend analysis tool to quickly weed out companies that weren't very consistent, leaving me with 20. Of those, I don't need to do much more research on 3 - WFMI, PNRA, EXBD.
So, now I'm in the process of diving a little deeper into some of these. I'll let you know if I find anything interesting.
On a side note, I really have to agree with you that the InvesTools site has the best tools around. I've been looking at some other sites on the web, and some have slicker looking charts or some other nice whiz bang feature, but no one else seems to have all the really useful stuff right there. The whole process above including going through each one and looking at the trend analysis took me about half an hour.
Jon
